US NatGas Plunges Amid Warmer Weather Outlook

2026-02-02 01:41 By Czyrill Jean Coloma 1 min. read

US natural gas futures fell 16.6% to $3.63 per MMBtu on Monday, reversing significant gains from the previous week as forecasts of milder weather conditions across broad areas of the country threatened to curb heating demand.

While pockets of the southern US remain cold, the National Oceanic and Atmospheric Administration expects that widespread temperatures will remain above seasonal norms.

This shift is expected to dampen demand for natural gas, which remains a critical source for both residential heating and electricity generation.

The market has been exceptionally volatile in recent weeks, with February futures soared to a three-year high before expiring last Wednesday, while the March contract spiked again on Friday as traders weighed conflicting weather forecasts against strong government storage figures.

Flows to liquefied natural gas export plants rose, boosted by the expected restart of a liquefaction train at Freeport LNG in Texas.



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US NatGas Plunges Amid Warmer Weather Outlook
US natural gas futures fell 16.6% to $3.63 per MMBtu on Monday, reversing significant gains from the previous week as forecasts of milder weather conditions across broad areas of the country threatened to curb heating demand. While pockets of the southern US remain cold, the National Oceanic and Atmospheric Administration expects that widespread temperatures will remain above seasonal norms. This shift is expected to dampen demand for natural gas, which remains a critical source for both residential heating and electricity generation. The market has been exceptionally volatile in recent weeks, with February futures soared to a three-year high before expiring last Wednesday, while the March contract spiked again on Friday as traders weighed conflicting weather forecasts against strong government storage figures. Flows to liquefied natural gas export plants rose, boosted by the expected restart of a liquefaction train at Freeport LNG in Texas.
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